A new chapter in Hungary’s family policy began on 1 October: mothers with three children are now exempt from personal income tax, the Ministry of Culture and Innovation announced. The change applies regardless of the mothers’ age or whether their children are still young or already adults.

According to State Secretary for Families Zsófia Koncz, the measure could affect as many as 250,000 mothers. She outlined the potential financial impact: a woman earning 300,000 forints a month will keep an extra 45,000 forints, while someone on 600,000 forints will save 90,000. Those earning the national average salary could gain over 100,000 forints monthly, adding up to more than a million forints extra income per year.

To claim the exemption, mothers must submit a tax declaration either to their employer or via the National Tax and Customs Administration’s website. Those who file in October will already see the higher salary in November. The declaration only needs to be submitted once. Alternatively, the benefit can be claimed in the annual tax return, with a lump sum refund issued in May.

Koncz noted that in families with underage children, many mothers will not pay a single forint in tax or contributions, effectively taking home their entire gross salary as net pay.

She also highlighted upcoming steps in family tax policy: from 2026, mothers under 40 with two children will also receive a full exemption, while from January the family tax allowance will increase by a further 50 per cent. ‘Europe’s largest family tax reduction programme will continue in 2026, because we believe in lowering taxes, not raising them, unlike those in Brussels who want to burden Hungarian families with higher levies,’ Koncz said.

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